• 02
  • July
    2010

A living trust is an estate planning tool that lets you direct how your property will be distributed after you die. It can also direct how you want property managed if you are alive but unable to manage it yourself. In this way it is different than a will.

Establishing a trust is done by creating a trust document and transferring property into the trust. The trust will not take effect unless the creator of the trust transfers ownership of property to the trust. Transferring ownership is called "funding" the trust.

Living trusts take effect during the creators' lifetimes. Frequently, creators of living trusts name themselves as the initial trustee. This way, they maintain control over the trust property while they are alive.

If you are interested in possibly establishing a living trust, it will be important to get advice from a Florida estate planning attorney who understands living trusts.

Pros & Cons of Living Trusts...

A properly created and funded living trust can help you manage assets during a disability. It is also a useful tool if you have children or grandchildren with special needs, or if you own real estate in more than one state.

It also has the advantage of being one of many ways to avoid probate. (That does not mean, though, that having a living trust guarantees you will avoid probate. Depending on the circumstances, you may or may not avoid probate. Again, a Florida estate planning lawyer will be essential.)

If you are not in any of the categories above, a living trust may not be the estate planning route for you. Beware of salespeople who push living trusts by exaggerating probate costs and estate taxes, and exaggerating the savings gained by a living trust.